Income Statements under Absorption and Variable Costing

Shawnee Motors Inc. assembles and sells MP3 players. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August:

Sales (10,500 units)$1,365,000

Production costs (14,000 units):

Direct materials $673,400

Direct labor 323,400

Variable factory overhead 161,000

Fixed factory overhead 107,8001,265,600

Selling and administrative expenses:

Variable selling and administrative expenses $196,200

Fixed selling and administrative expenses 75,900272,100

If required, round interim calculations to nearest cent

a. income statement according to the absorption costing concept.

Shawnee Motors Inc.

Absorption Costing Income Statement

For the Month Ended August 31

SalesjQuery22408719764805604382_1591366338422???????????

Cost of Goods Sold??????????

Gross Profit???????????

Selling and administrative expenses???????

Income from Operations?????

b. income statement according to the variable costing concept.

Shawnee Motors Inc.

Variable Costing Income

Statement For the Month Ended August 31

Sales?????????

Variable cost of goods sold???????????

manufacturing margin????????

variable selling and and administrative expenses

contribution margin

fixed costs:

fixed factory overhead??????????

fixed selling and administrative expenses???????

total fixed costs?????????

Income from operations?????????